As per the latest updates, the Ministry of International Trade and Industry (MITI) has revised its anti-dumping duties imposed on imports of cold rolled coils of alloy and non-alloy steel originating or exported from three Southeast countries such as China, South Korea, and Vietnam.
The revision of duties has been done after the government had conducted and completed the administrative review investigation on producers and importers in Malaysia, as well as producers or exporters from the alleged countries.
Now as per the revised margins, Chinese steel producers Bengang Steel Plates Co Ltd’s anti-dumping duties now stood at 42.08%, while BX Steel POSCO Cold Rolled Sheet Co Ltd (35.89%), Jiangsu Shagang International Trade Co Ltd (42.08%) and other producers/exporters (42.08%).
For South Korean steel producers, it is nil for POSCO, Hyundai Steel Company (11.55%), and other producers (21.64%).
In the case of Vietnamese steel producers, it is POSCO Vietnam Co Ltd (2.0%), China Steel Sumikin Viet Nam Joint Stock Company (13.68%) and others (13.68%).
The past events
The request for revision of duties on CRC imports was made by the domestic steel players in October last year and this request was made in accordance with Section 28 (1)(a) of the Countervailing and Anti-dumping Duties Act 1993 (Act 504) based on the charges that there was a substantial change in the dumping margin for the imports of CRC by producers or exporters from China, South Korea and Vietnam since the duty was imposed in 2016.
Malaysia had initiated the original anti-dumping investigation on CRC imports on Aug 27, 2015 and the final affirmative anti-dumping duties were imposed for a period of five years from May 24, 2016 until May 23, 2021, ranging from 3.06% to 23.78%.
Adverse effect of global trade war
Despite the anti-dumping duty in place on CRC in Malaysia, the influx of cheaper imports continued in the country due to trade tariffs announced by major steel consumers such as U.S. and Europe last year resulting in steel supply intended for U.S. and European countries being diverted to Southeast Asia. Apart from this the governments of Indonesia, the Philippines, Thailand, and Vietnam have already put in place protection measures against cheap steel imports that are being dumped into their countries.
The import of CRC from China is particularly cheap, as the Chinese government subsidises imports to other countries via an export tax rebate of up to 16%.
As per the industry participants, Imported CRCs now account for about 70% of total CRC consumption in Malaysia, while domestic CRCs make up only 30% resulting which domestic production is suffering, with companies operating not even at half of their full capacity. In fact CRC is being brought into Malaysia at almost the same price as hot rolled coils, which is the raw material required to make CRC. Subsequently, the rising imports and falling domestic utilisation levels must have compelled the country to revise the dumping margins on CRC.
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